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country defrayed by the British Treasury. I think that such a legislature could hardly fail to sympathise with their constituents, who would very unwillingly relinquish the advantages they at present derive from the Government expenditure. The misfortune of this country is, that any great discontent on the part of the European population rests upon the native population, the turbulent amongst whom always become encouraged at any signs of weakness in the Government, and this discontent amongst the native population would be heightened in the instance under consideration from the fact of the natives as well as the Europeans being equally interested in the continuance of the Government expenditure, and being certain equally to feel its reduction, unless that reduction is most judiciously conducted, and considering the large number of natives who would be thrown out of employment, this discontent might produce most dangerous results.

I feel therefore that there is, in the present instance, great necessity for enforcing the rule that the inhabitants of the colony should be required to defray the expenses of their own government before a Representative form of government is granted to them, and I think that if a guarantee were afforded to them, that such a form of government as I have recommended shall be introduced into this colony as soon as they can defray the expenses of their own government, I could then make the requisite reductions in the government expenditure with the greatest concurrence and co-operation of the great mass of the colonists, and that all danger of discontent and disturbance would thus be avoided.

Your Lordship will see from the whole of the proceedings which passed in the Legislative Council of the Province of New Munster, that there appears to be a general desire that some guarantee should be given that a Representative form of government should be introduced into New Zealand at the period which I have named, and the best mode which has yet suggested itself for ensuring such a guarantee is, that the provisions of the proposed form of government should be embodied in an Act of Parliament to take effect at the date named.

I think that after having stated at such length as I have above done, the reasons which induced me to recommend that the introduction of Representative Institutions into the whole of these islands should be delayed till the period I have recommended, it will not be necessary for me to trouble your Lordship farther on this subject, and this the more especially as in my despatch, No. 106, of the 29th November last, I detailed also at some length other reasons which made me think that the country was not in a fit state for the immediate introduction of a Representative form of government.

I would therefore only add, that should Her Majesty’s Government think proper to declare that a Representative Government should be introduced into this colony at the period named, or at such earlier date, either throughout the whole colony or in any Province or Provinces as may for that purpose be proclaimed by the Governor-in-Chief, that I would neither shrink from the responsibility of declining to introduce such Institutions into any Province until I believe they can safely be conferred upon it, nor will I upon the other hand for a single day unnecessarily delay obtaining for the inhabitants of this colony a boon which I am most anxious to see conferred upon them.

I have, &c.,

(Signed) G. Grey

To the Right Honorable Earl Grey.

Despatches read, and on the motion of Dr. Greenwood, seconded by Mr. Hickson, the said despatches ordered to be printed.

His Excellency the Lieutenant-Governor, at five o’clock p.m., adjourned the Council sine die.

H. S. Harrison,

Clerk of Council,

Wellington Council Chamber,

28th July, 1849.